Wednesday, November 30, 2016

OPEC agrees to cut output by 1.2 million barrels a day

Morgan Stanley said Monday that an OPEC agreement could boost crude prices by $5 or more. While the deal is unlikely to be enough to wipe out the crude glut entirely -- OPEC’s own estimates show it needs to pump just 31.9 million barrels a day from January to June to balance supply and demand -- it clears the way for participation by non-OPEC suppliers, chiefly Russia.

Russia, the biggest producer outside the bloc, has said if OPEC agrees on individual country quotas it’s ready to participate, including possibly reducing its output, a person familiar with Russian thinking said earlier. That would mark a reversal of its previous position ....